Govt borrows Rs8.3tr from banks

July 09, 2024 (MLN): The government of Pakistan acquired a significantly larger debt domestically in the fiscal year 2023-24 as compared to previous years.

During FY24, the government borrowed Rs8.3 trillion from scheduled banks, the latest data released by the State Bank of Pakistan showed.

That compares with a borrowing of Rs3.6tr in FY23 and Rs3.3tr in FY22.

Of the total Rs8.3tr, the Federal Government borrowed Rs8.56tr while the Provincial Government retired Rs261.27bn.

The two biggest sources of financing for budgetary support are the State Bank of Pakistan and the Scheduled Banks.

This fiscal year, the government paid off a net sum of Rs694.85bn to the central bank. Accordingly, the net borrowing stood at Rs7.49tr.

The government sector borrowings are divided into three broad categories based on the purpose of the loan which are budgetary support, commodity operations, and others.

Split three ways between these broad categories, the net borrowing for budgetary support was Rs7.61tr for budgetary support, Rs107.59bn retirement off Commodity Operations, and Rs6.18bn retirement off others.

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